What is Amibroker and How Does it Work?Amibroker is a consumer trading software package for technical analysis, charting and backtesting. It is a trading software platform that is designed to help traders analyze market trends, test trading strategies, and optimize their trading systems. It is popular among both professional traders and individual investors and is probably best known for its...
What are stock market indices and how do they work?Stock market indices are tools that measure the performance of a specific group of stocks or the overall stock market. They can provide investors with a benchmark for the performance of their investments and can also serve as a barometer for the health of the economy. In this article, we'll explore what stock market indices are and how they...
Introduction to the ADX Indicator: What It Is and How It WorksThe Average Directional Index (ADX) is a technical trading indicator that is commonly used to measure the strength and direction of a trend in a financial market. Developed by J. Welles Wilder in the 1970s, the ADX has become a widely-used tool among traders and investors for identifying and analyzing trends in a variety of markets,...
This blog post is based on a presentation delivered at the Australian Technical Analysts Association Annual Conference. The video presentation is available below and the blog post that follows is a text version of the video presentation.Introduction to Trading Profitably In An Uncertain World Would you like to make money more consistently, no matter what the market or economy is doing? I want...
Relative Strength Index (RSI) IntroductionRSI is short for Relative Strength Index. It is a trading indicator used in technical analysis (a Momentum Oscillator) that measures the magnitude of recent price moves to determine whether overbought or oversold conditions are present in the price of a stock. The RSI is typically measured on a scale of 0 to 100, with the default overbought and oversold...
Introduction to Technical Analysis BasicsTechnical analysis is an approach to analyzing stocks that uses charts and indicators based on price and volume. Traders can make profitable trading decisions using technical analysis indicators and chart patterns. I have been using trading systems based on technical analysis and technical indicators for over 20 years and have had very significant success...
Introduction Moving Averages What is a moving average and what is it used for? A moving average is a trading indicator that used on your charts and in your trading systems to help gauge the direction of the price movements. Moving averages are one of the most commonly used indicators in technical analysis, systematic trading and algo trading. This is because they perform several useful functions...
In Amibroker when you are generating your trading signals from the backtest there is one important setting that you need to use most of the time. If you get this wrong then your Amibroker trading signals will be wrong... so when should you use the 'Add Artificial Future Bar' setting in Amibroker? When your system gets a signal today and enters tomorrow, it's a one day delay between the signal...
Slippage is one of those silent profit-killers that most traders underestimate—until it starts eating into their results. In simple terms, slippage is the difference between the price you expect to get and the price you actually receive when buying or selling a stock. It can happen for many reasons: market volatility, low liquidity, or your own order size being too large relative to the market...
The key lesson is to make sure that you follow the calculations all the way through yourself manually so that you understand what the conversion should be and make sure that your position size is appropriate relative to your base currency account. For example, you can get yourself into trouble. If my base currency was Australia and I have a system on the US. If I don't set it up right, I might...
Trading requires a deep fascination with the markets, strong work ethic and persistence. Traders are also human and experience emotions - we go through ups and downs in our trading journey. And with these constant challenges, our motivation can fluctuate. It can be hard to keep up trading motivation, particularly when you’ve had a bad trade or feel that you are not advancing as quickly as you’d...
The most important thing is not exactly what you do, that it's you understand what you are doing. The implications of it, because there's different ways to configure this. You could have in Amibroker, your base currency is Euro and you could run your systems, which are trading US dollar stocks, and Amibroker will do the calculations and size everything back so that it's in your base currency....